Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
There are 19 types of debts that are not dishargeable in any Bankruptcy - including a Chapter 11.
Can it be claimed that the malicious prosecution was based on false pretenses?
1) If you can convince the Bankruptcy court that this claim is based on fraud or false pretenses, or that the malicious prosecution was willful (negligent is not sufficient), then you will be able to have this claim determined to be non-dischargable. ("Willful" means the company did actually know they were acting in error, "negligent" means they did not know, but should have known.)
2) A motion for relief from the automatic stay would have to be filed in the New York Bankruptcy court - based on the fact that the claim is non-dischargeable. The malicious prosecution case would not proceed in the Bankruptcy court, it would have to be prosecuted outside of Bankruptcy court.
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